HASSAN, M. KABIR; FARHAT, JOSEPH; AL-ZU'BI, BASHIR - In: Journal of Islamic Economic Studies 11-1 (2003), pp. 2-30
This paper finds that the dividend signaling hypothesis is able to explain the phenomenon of asset concentration in short- and medium-term investments in the Islamic interest-free banking system. To maintain a stable dividend payout, managers of Islamic banks will prefer to invest in instruments...